Believe it or not, fine whisky was one of the top-performing asset classes over the past decade.
Rare bottles of high-end Scotch whisky from renowned distilleries like Laphroaig and Macallan exploded in value between 2012 and 2022.
Take the Macallan 1975, which fetched a £6,000 price tag in December 2022; a walloping 1,500% increase over 10 years. Or the Laphroaig 40 YO, which surged 600% in the same time frame.
While it is true that prices have recalibrated in 2023, fine whisky’s desirability and exclusivity make it one of the most popular, most intriguing out-of-the-box investments for investors in Britain and across the globe.
No one knows this asset class better than seasoned whisky collector Louis Haseman at Fah Mai Holdings Group Inc (OTC:FMHG), which is preparing to bring a slice of the rare whisky market to the Nasdaq.
Fah Mai, known for its diverse business model that encompasses fine whisky trading, bulk spirits wholesaling, and fractional cask trading, is planning its initial public offering in early 2024.
Its business model is multifaceted and innovative.
One of its key components is the fractional cask trading system, a concept that allows investors to own a percentage of the contents of a whisky barrel, a strategy that mitigates the risk of the angel's share - the natural evaporation of spirits during ageing.
Fah Mai boasts a thriving community of thousands of existing whisky investors chasing handsome returns on their fractional cask shares.
But in an interview with Proactive, Haseman said the company’s aim is “not just to be seen as an investment entity but to cover the entire spectrum of whisky production and sales”.
Fah Mai’s ambition will extend to the establishment of distilleries in strategic locations such as Scotland, England, and the US, post-IPO. This will bring Fah Mai directly into the fascinating world of whisky production.
“Becoming a producer is going to bridge the gap and increase our margins,” Haseman predicted.
Steeped in passion
Fah Mai is something of a passion project for Haseman.
“The whole thing started when I bought my first bottle,” Haseman said. Over the years, one bottle turned into hundreds of bottles and Haseman ended up building a portfolio “that continued to grow in value”.
Haseman visiting Speyside Cooperage in 2023 – Credit: Fah Mai Holdings
Haseman was bought out of his construction company in 2016 and used the opportunity to dive into something he enjoyed.
“The whisky industry is interesting, it had clearly shown positive returns for myself, and I thought if we had a bigger fund pool, I could do it for more people,” he explained.
The company's growth has been bullish, with the Platinum Cask vision being particularly notable for its innovative approach to whisky ownership, while its online platform, Whisky Bull Auctions, is changing the way collectors and enthusiasts engage with the whisky market.
This Christmas, Fah Mai has got the second oldest bottle of whiskey ever released on its online auction, a 72-year-old Glenn Grant.
Less than 300 of Gordon & MacPhail’s Glen Grant 72 YO exist, and it has been described as one of “the most historically significant whiskies ever produced”.
Combined with Fah Mai’s bulk spirit distribution business, the company has clearly been hard at work kitting itself out as a fully fledged, all-encompassing whisky endeavour.
With one head office in Thailand, Fah Mai imports Scotch whisky to Thailand, with plans for expansion to other countries down the line.
But one quick question: Why does Haseman love Scotch specifically?
Although some very high-end distilleries are popping up in Australia, India, Taiwan and continental Europe, Haseman is adamant that single-malt Scotch “will remain the benchmark in the west for whisky”.
“People from Ireland would probably argue that Irish Whiskey was the benchmark and it arguably came before Scotch, but the scotch whisky industry is the the most prominent,” he added (just don’t shoot the messenger).
Despite prices falling back this year Haseman is bullish on fine whisky prices going forward.
“I think we've already seen that in the secondary market on the auctions, where the price and value of the whisky started to go back up again this Christmas,” said Haseman.
As a tip for would-be investors, he said it’s worth keeping an eye on Macallan Folio prices, as they are “always a good benchmark”.
Fah Mai is hoping to schedule an IPO bell-ringing day for the end of February. Keep an eye out.